RF - Grain Alliance

Location:

Ukraine

Project number:

52090

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

09 Jun 2020

Status:

In Exploratory, Pending Final Review

PSD disclosed:

09 Jun 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

The provision of a senior secured loan of up to €7 million (the "Loan") to Baryshevska Grain Company LLC, the main operating company of the Grain Alliance Group  (the "Borrower", the "Group") under the Resilience Framework. The Loan will be used to finance working capital needs of the Group amid the adverse impact of COVID-19 on its business. This project was approved in the context of the EBRD's response to the COVID-19 pandemic. 

Project Objectives

The Loan will support the Group's liquidity and help it withstand the Covid19-caused crisis. Therefore, it will help the company to preserve its capital expenditure plans, which were part of the original project between the Bank and Grain Alliance approved in 2019. 

Transition Impact

ETI score: 62

The project will help to ensure that Grain Alliance preserves its ability to meet the transition impact that was expected to be achieved as part of the original project approved in 2019. The original transition impact objectives are as follows:

  • Integrated: Improvement in infrastructure for logistics, storage and transportation for export facilitation especially for small third-party farmers.
  • Green: Installation of two biomass-fired grain dryers with total capacity of 24 MW utilising sunflower residues, including husk, dust and broken kernels generated during the operational activity of the Group.

The original project has a PTI score of 62.

Client Information

BARYSHEVSKA GRAIN COMPANY LLC

Baryshevska Grain Company LLC, incorporated in Ukraine, is the main operating company of the Grain Alliance Group ("Grain Alliance" or the "Group"). The Group is focused on crop farming of around 55,000 hectares of land in Northern of Ukraine.

EBRD Finance Summary

EUR 7,000,000.00

Total Project Cost

EUR 7,000,000.00

Additionality

The EBRD financing is provided in the extraordinary circumstances of the COVID-19 crisis that have impacted the economy and limited the new lending opportunities in the markets. Local banks for instance are reducing their working capital limits for the existing clients. Specific triggers for the Enhanced Additionality Approach do not apply.

Environmental and Social Summary

Categorised B (2019 ESP) and Low-Medium Risk. Financing of the working capital for a grain producing company is associated with site-specific E&S impacts that can be managed via implementation of the good management practices. The Borrower is an existing EBRD client who has recently been subject to in-house Environmental and Social Due Diligence, which demonstrated that the company is compliant with national E&S regulatory requirements; possesses adequate E&S management systems and  the required authorizations and certifications; and has capacity to implement the Project in line with the PRs. E&S assessment for the current project included review of the ESAP status, which confirmed good progress in implementing the mitigation measures. No new E&S issues arise from the new transaction and client will continue to implement previously agreed ESAP and recently introduced COVID-response plan aimed at minimization of financial, operational, health and safety and social risks. There is no GET component associated with the Project.

Technical Cooperation and Grant Financing

The Project will have a Technical Cooperation (TC) component provided by the Japan-EBRD Technical Cooperation Fund. The TC funds will partially cover the legal due diligence costs.

Company Contact Information

Eugene Radovenyuk
evgeniy.radovenyuk@grainalliance.com
+38 04576 62 572
+46 8 441 55 00
www.grainalliance.com
11 Torphyana Str. Baryshivka Urban Type Village, Baryshivka District, Kyiv Region, Ukraine, 07500

PSD last updated

09 Jun 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Project Complaint Mechanism (PCM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g., through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s accountability mechanism.

The accountability mechanism independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit our webpage to find out how to submit a complaint through the confidential online form, by email, mail or telephone. We are available to discuss your concerns and answer any questions you may have about the submission or handling of complaints. Complainants’ identities may be kept confidential upon request.

Please note that after the appointment of the new mechanism Head in 2020, the revised Project Accountability Policy and Guidance will come into effect to guide case handling.

 

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